Toyota shuts down its production plants in Pakistan2 min read
Pak Suzuki had already announced to further extend shutdown of its automobile plant till 31st August on account of dearth of imported auto parts.
KARACHI: The manufacturers and assemblers of Toyota car in Pakistan, Indus Motor Company (IMC) Tuesday announced to temporarily shut down its production plant in Pakistan from 1st – 16th September.
According to a notice publish at the Pakistan Stock Exchange (PSX) website, the company said, “the mechanism introduced by the State Bank for obtaining prior approval for import of CKD Kits and other Components of passenger cars is creating adverse impact on supply-chain and production activities.” The delay in the aforesaid approvals has created hurdles in clearance of import consignments of the Company, resulting in significant reduction in inventory level.”
“Due to insufficient inventory levels to maintain production, the company has decided to temporarily halt its production activities,” the company added in the notice.
The company had already announced in July this year that recent decision of the State Bank and the Ministry of Finance will totally damage production units of the auto sectors in Pakistan and had warned that it could shut down its plant at any time.
Today, the company announced that it would close production units of Toyota cars in Pakistan for 16 days.
Already, car lovers have to wait for 5 to 6 months to get their booked cars and the closure of its plant means the Company would not be able to deliver cars.
Pak Suzuki Motor extends plant shutdown
Pak Suzuki Motor Company (PSMC) had already announced to further extend shutdown of its automobile plant by eight more days on account of dearth of imported auto parts.
The company has decided to further extend the shutdown of its automobile plant from August 22, 2022 to August 31, 2022. In a written notice, the Japanese automaker conveyed this to the PSX.
“This shutdown is partly due to a circular of the State Bank of Pakistan (SBP) seeking prior approval for completely knocked down (CKD) units,” an analyst said.
Only 50 per cent import of CKD is allowed for the automobile sector, the told the reporter.